KUALA LUMPUR: Global wallet money left Bursa last week after two weeks of foreign purchases, according to MIDF Research.
Based on Bursa's preliminary data, which were not market agreements, international funds have spent RM631.4 million net on local equities, eliminating foreign net inflows from RM458.2 million in the previous week, "said MIDF in its weekly fund flow report.
The research firm noted that offshore investors are already selling a lot on Monday to an amount of RM142.3mil net when the crisis in Turkey raged over emerging markets, including Malaysia.
"It came as no surprise that local stocks with exposure to Turkey, such as Malaysia Airports Holdings and IHH Healthcare were the main coverage that day with losses of more than 5.0%, "said MIDF.
The level of the foreign net turnover declined slowly later on Tuesday and Wednesday to RM127.1mil and RM85.4mil, respectively, when the Turkish lira recovered from the enormous decline of Monday.
The FBM KLCI even followed up on these two days while other regional markets such as Thailand and Hong Kong were in the red zone during the same period.
However, foreign net sales activity gradually increased on Thursday and Friday to RM127.9mil and RM148.7mil respectively.
The news from China and the US that led to trade negotiations at the end of August was not enough to boost the risks after Malaysia's announcement of lower than expected GDP growth of 2Q18 of 4.5% year-on-year market expectations of 5.2% year on year.
"To date, August has seen a net foreign outflow of RM128.6m. The year-to-date outflow from Malaysia is at RM8.6bil since last Friday, but is still the nation with the second lowest outflow. between the 4 ASEAN markets we monitor, "said MIDF.
Meanwhile, the participation of foreign investors has been active so far this year, as their weekly average daily traded value (ADTV) was 31 hours for 33 weeks above the RM1bil.
The weekly ADTV of the retail market and local institutional funds also remained healthy above RM800mil and RM2bil respectively despite the decline last week.